TABLE OF CONTENTS PART 271 GENERAL INFORMATION AND DEFINITIONS 1

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The Food Stamp Program

A Compilation of Regulations

Pertaining to

Retail Food Stores, Wholesale Food Concerns and

Financial Institutions

Food and Nutrition Service

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(a) Coupons as obligations. ________________________________________________________ 13 (b) Penalties. ___________________________________________________________________ 13 (c) Security for coupons and ATP's. _________________________________________________ 14 (d) Coupon issuers. ______________________________________________________________ 14 (e) Forfeiture and denial of property rights.____________________________________________ 15

§271.6 Complaint procedure. _______________________________________________ 17

(a) State agency responsibility— ____________________________________________________ 17 (b) Regional office responsibility. ___________________________________________________ 18

PART 272—REQUIREMENTS FOR PARTICIPATING STATE AGENCIES _ 18 §272.1 General terms and conditions. ________________________________________ 18

(b) No sales taxes on food stamp purchases. ___________________________________________ 18

§272.9 Approval of homeless meal providers. __________________________________ 19 PART 273—CERTIFICATION OF ELIGIBLE HOUSEHOLDS _____________ 19

§273.11 Action on households with special circumstances. _______________________ 19

(e) Residents of drug and alcohol treatment and rehabilitation programs _____________________ 19 (f) Residents of a group living arrangement. ___________________________________________ 22 (g) Shelters for battered women and children. __________________________________________ 23 (h) Homeless food stamp households. ________________________________________________ 24

PART 274—ISSUANCE AND USE OF COUPONS_________________________ 24 §274.12 Electronic Benefit Transfer issuance system approval standards. __________ 24

(g) Household participation— ______________________________________________________ 24 (h) Retailer participation. __________________________________________________________ 28 (i) Performance and technical standards. ______________________________________________ 31 (m) Re-presentation. _____________________________________________________________ 37 (n) Store-and-Forward. ___________________________________________________________ 38

PART 278—PARTICIPATION OF RETAIL FOOD STORES, WHOLESALE FOOD CONCERNS AND INSURED FINANCIAL INSTITUTIONS __________ 39

§278.1 Approval of retail food stores and wholesale food concerns. ________________ 39

(a) Application. _________________________________________________________________ 39 (b) Determination of authorization. __________________________________________________ 39 (c) Wholesalers. _________________________________________________________________ 44 (d) Meal services.________________________________________________________________ 44

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(e) Treatment programs.___________________________________________________________ 44 (f) Group living arrangements.______________________________________________________ 45 (g) Shelters for battered women and children. __________________________________________ 45 (h) House-to-house trade routes. ____________________________________________________ 45 (i) Private homeless meal providers. _________________________________________________ 45 (j) Authorization. ________________________________________________________________ 45 (k) Denying authorization. _________________________________________________________ 46 (l) Withdrawing authorization.______________________________________________________ 47 (m) Refusal to accept correspondence or to respond to inquiries. ___________________________ 48 (n) Periodic reauthorization. _______________________________________________________ 48 (o) Applications containing false information. _________________________________________ 48 (p) Administrative review. _________________________________________________________ 48 (q) Use and disclosure of information provided by firms. _________________________________ 48 (r) Public and Private Nonprofit Homeless Meal Providers. _______________________________ 51 (s) ____________________________________________________________________________ 52 (t) Periodic notification. ___________________________________________________________ 52

§278.2 Participation of retail food stores. _____________________________________ 52

(a) Use of coupons. ______________________________________________________________ 52 (b) Equal treatment for coupon customers. ____________________________________________ 52 (c) Accepting coupons. ___________________________________________________________ 53 (d) Making change. ______________________________________________________________ 53 (e) Accepting coupons before delivery. _______________________________________________ 53 (f) Paying credit accounts. _________________________________________________________ 53 (g) Redeeming coupons. __________________________________________________________ 53 (h) Identifying coupon users. _______________________________________________________ 54 (i) Checking meal delivery service recipients. __________________________________________ 54 (j) Checking hunting and fishing equipment users. ______________________________________ 54 (k) Checking participants in restaurants. ______________________________________________ 54 (l) Checking public or private nonprofit homeless meal provider recipients. __________________ 55

§278.3 Participation of wholesale food concerns. _______________________________ 55

(a) Accepting coupons. ___________________________________________________________ 55 (b) Accepting legally obtained coupons. ______________________________________________ 55 (c) Redeeming coupons.___________________________________________________________ 55 (d) Handling retailer redemption certificates. __________________________________________ 55

§278.4 Procedure for redeeming coupons. _____________________________________ 55

(a) Coupons accepted without authorization.___________________________________________ 55 (b) Endorsing coupons. ___________________________________________________________ 55 (c) Using redemption certificates. ___________________________________________________ 55

§278.5 Participation of insured financial institutions. ___________________________ 56

(a) Accepting coupons. ___________________________________________________________ 56 (b) Role of Federal Reserve Banks. __________________________________________________ 57 (c) FNS liability for losses. ________________________________________________________ 57 (d) FNS use of coupons to detect violations. ___________________________________________ 57 (e) Selling coupons to stores for internal checks.________________________________________ 58 (f) Continued participation of households under investigation. _____________________________ 58

§278.6 Disqualification of retail food stores and wholesale food concerns, and imposition of civil money penalties in lieu of disqualifications. ______________________________ 58

(a) Authority to disqualify or subject to a civil money penalty._____________________________ 58 (b) Charge letter— _______________________________________________________________ 59 (c) Review of evidence. ___________________________________________________________ 60 (d) Basis for determination. ________________________________________________________ 60 (e) Penalties.____________________________________________________________________ 60 (f) Criteria for civil money penalties for hardship and transfer of ownership.__________________ 63

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trafficking. _____________________________________________________________________ 64 (j) Amount of civil money penalty in lieu of permanent disqualification for trafficking. _________ 66 (k) Payment of civil money penalty in lieu of a permanent disqualification for trafficking. _______ 67 (l) Fines for the acceptance of loose coupons. __________________________________________ 67 (m) Fines for unauthorized third parties that accept food stamps. ___________________________ 67 (n) Review of determination. _______________________________________________________ 68 (o) Delivery of notice. ____________________________________________________________ 68

§278.7 Determination and disposition of claims—retail food stores and wholesale food concerns. _________________________________________________________________ 68

(a) Claims against violators.________________________________________________________ 68 (b) Forfeiture of a collateral bond. ___________________________________________________ 68 (c) Coupons accepted without authorization.___________________________________________ 69 (d) Burned or mutilated coupons. ___________________________________________________ 69 (e) Old series coupons.____________________________________________________________ 69 (f) Denials of claims brought by authorized firms against FNS. ____________________________ 69 (g) Lost or stolen coupons._________________________________________________________ 69

§278.9 Implementation of amendments relating to the participation of retail food stores, wholesale food concerns and insured financial institutions. _______________________ 69

(a) Amendment 224. _____________________________________________________________ 69 (b) Amendment 257. _____________________________________________________________ 70 (c) Amendment 267. _____________________________________________________________ 70 (d)____________________________________________________________________________ 70 (e) Amendment No. 286. __________________________________________________________ 70 (f) Amendment No. 280. __________________________________________________________ 70 (g) Amendment No. 304. __________________________________________________________ 70 (h) Amendment No. 323. __________________________________________________________ 70 (i) Amendment No. 334. __________________________________________________________ 70 (j) Amendment No. 354. __________________________________________________________ 70 (k) Amendment No. 331. __________________________________________________________ 70 (l) Amendment No. 335. __________________________________________________________ 70 (m) Amendment No. 383. _________________________________________________________ 70

PART 279—ADMINISTRATIVE AND JUDICIAL REVIEW—FOOD

RETAILERS AND FOOD WHOLESALERS ______________________________ 71 §279.1 Jurisdiction and authority. ___________________________________________ 71

(a) Jurisdiction. _________________________________________________________________ 71 (b) Authority. ___________________________________________________________________ 71

§279.2 Manner of filing requests for review. ___________________________________ 71

(a) Submitting requests for review. __________________________________________________ 71 (b) Content of requests. ___________________________________________________________ 72 (c) Time limit for requesting review. _________________________________________________ 72

§279.3 Content of request for review._________________________________________ 72

(a) Identifying the request. _________________________________________________________ 72 (b) Supporting the request._________________________________________________________ 72

§279.4 Action upon receipt of a request for review. _____________________________ 72

(a) Holding action. _______________________________________________________________ 72 (b) Filing supporting information. ___________________________________________________ 73 (c) Extensions of time. ____________________________________________________________ 73

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(a) Basis for designated reviewer determination.________________________________________ 73 (b) Review of denial or withdrawal of authorization. ____________________________________ 73 (c) Review of disqualification or civil money penalty or fine.______________________________ 73 (d) Review of denial of claim. ______________________________________________________ 73 (e) Determination notifications. _____________________________________________________ 73 (f) Effective date. ________________________________________________________________ 73

§279.6 Legal advice and extensions of time.____________________________________ 74

(a) Advice from Office of the General Counsel. ________________________________________ 74 (b) Extensions of time. ____________________________________________________________ 74

§279.7 Judicial review._____________________________________________________ 74

(a) Filing for judicial review. _______________________________________________________ 74 (b) Summons and complaint. _______________________________________________________ 74 (c) Trial de novo. ________________________________________________________________ 74 (d) Stay of action.________________________________________________________________ 74

§279.8 Implementation of amendments relating to administrative and judicial review. 75

(a) Amendment No. 257. __________________________________________________________ 75 (b) Amendment No. 274. __________________________________________________________ 75 (c) Amendment No. 334. __________________________________________________________ 75

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271.1(a)-(b)

PART 271—GENERAL INFORMATION AND DEFINITIONS

Sec.

271.1 General purpose and scope. 271.2 Definitions.

271.3 Delegations to FNS for administration.

271.4 Delegations to State agencies for administration.

271.5 Coupons as obligations of the United States, crimes and offenses.

271.6 Complaint procedure

§271.1 General purpose and scope. (a) Purpose of the food stamp program. The food stamp program is designed to promote the general welfare and to safeguard the health and well being of the Nation's population by raising the levels of nutrition among low-income households. Section 2 of the Food Stamp Act of 1977 states, in part: “Congress hereby finds that the limited food purchasing power of low-income households contributes to hunger and malnutrition among members of such households. Congress further finds that increased utilization of food in establishing and maintaining adequate national levels of nutrition will promote the distribution in a beneficial manner of the Nation's

agricultural abundance and will strengthen the Nation's agricultural economy, as well as result in more orderly marketing and

distribution of foods. To alleviate such hunger and malnutrition, a food stamp program is herein authorized which will permit low-income households to obtain a more nutritious diet through normal channels of trade by increasing food

purchasing power for all eligible households who apply for participation.”

(b) Scope of the regulations. Part 271 contains general information,

definitions, and other material applicable to all parts of this subchapter. Part 272 sets forth policies and procedures governing State agencies which participate in the program. Part 273 describes the eligibility criteria to be applied by State agencies and related processing requirements and standards. Part 274 provides requirements for the issuance of coupons to eligible

households and establishes related issuance responsibilities. Part 275 sets forth guidelines for monitoring the food stamp program, analyzing the results and formulating corrective action. Part 276 establishes State agency liability and certain Federal sanctions. Part 277 outlines procedures for payment of administrative costs of State agencies. Part 278 delineates the terms and conditions for the participation of retail food stores, wholesale food concerns, meal services, and insured financial institutions. Part 279 establishes the procedures for administrative and judicial reviews requested by food retailers, food wholesalers, and meal services. Part 280 explains procedures for issuing emergency coupon allotments to certain victims of disasters unable to purchase adequate amounts of food. Part 281 sets forth guidelines for designating Indian tribes as State agencies. Part 282 provides guidelines for initiation, selection, and operation of demonstration, research, and evaluation projects. Part 284 provides for a

nutrition assistance program for the Commonwealth of the Northern Mariana Islands (CNMI). Part 285 describes the general terms and conditions under which grant funds are provided to the Commonwealth of Puerto Rico.

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§271.2 Definitions.

Access device means any card, plate, code, account number, or other means of access that can be used alone, or in conjunction with another access device, to obtain payments, allotments, benefits, money, goods, or other things of value, or that can be used to initiate a transfer of funds under the Food Stamp Act of 1977, as amended.

Active case means a household which was certified prior to, or during, the sample month and issued food stamp benefits for the sample month.

Active case error rate means an estimate of the proportion of cases with an error in the determination of

eligibility or basis of issuance. This estimate will be expressed as a percentage of the completed active quality control reviews excluding all results from cases processed by SSA personnel or participating in a

demonstration project identified by FNS as having certification rules that are significantly different from standard requirements.

Adequate notice in a periodic reporting system such as monthly reporting or quarterly reporting means a written notice that includes a statement of the action the agency has taken or intends to take; the reason for the intended action; the household's right to request a fair hearing; the name of the person to contact for additional information; the availability of continued benefits; and the liability of the household for any overissuances received while awaiting a fair hearing if the hearing official's decision is adverse to the household. Depending on the timing of a State's system and the timeliness of report submission by participating households, such notice may be received prior to

agency action, at the time reduced benefits are received, or, if benefits are terminated, at the time benefits would have been received if they had not been terminated. In all cases, however, participants will be allowed ten days from the mailing date of the notice to contest the agency action and to have benefits restored to their previous level. If the 10-day period ends on a weekend or a holiday and a request is received the day after the weekend or holiday, the State agency shall consider the request to be timely.

Alien Status Verification Index (ASVI)

means the automated database maintained by the Immigration and Naturalization Service which may be accessed by State agencies to verify immigration status.

Allotment means the total value of coupons a household is authorized to receive during each month or other time period.

Application form means: (1) The application form designed or approved by FNS, which is completed by a household member or authorized representative; or

(2) For households consisting solely of public assistance or general assistance recipients, it may also mean the

application form used to apply for public assistance or general assistance,

including attachments approved by FNS, which is completed by a household member or authorized representative.

Assessment an in-depth evaluation of employability skills coupled with counseling on how and where to search for employment. If combined with work experience, employment search or training, an assessment of this nature could constitute part of an approvable employment and training component.

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Authorization document means an intermediary document issued by the State agency and used in an issuance system to authorize a specific benefit amount for a household.

Authorization to participate card (ATP) means a document which is issued by the State agency to a certified

household to show the allotment the household is authorized to receive on presentation of such document.

Base period means the first 6-month reporting period of each fiscal year.

Beginning month(s) in a Monthly Reporting and Retrospective Budgeting system means either the first month for which the household is certified for food stamps (where the State agency has adopted a one month accounting system) or the first month for which the

household is certified for food stamps and the month thereafter (where the State agency has adopted a two month accounting system). Except for

beginning months in sequence as described in the preceding sentences, a beginning month cannot be any month which immediately follows a month in which a household is certified. The month following the month of

termination resulting from a one-month temporary change in household

circumstances shall not be considered a beginning month.

Budget month in a Monthly Reporting and Retrospective Budgeting system means the fiscal or calendar month from which the State agency uses income and other circumstances of the household to calculate the household's food stamp allotment to be provided for the corresponding issuance month.

Bulk storage point means an office of the State agency or any person,

partnership, corporation, organization, political subdivision, or other entity with

which a State agency has contracted for, or to which it has assigned responsibility for, the security and storage of food coupons.

Claims collection point means any office of the State agency or any person, partnership, corporation, organization, political subdivision or other entity with which a State agency has contracted, or to which it has assigned responsibility for the collection of claims.

Communal dining facility means a public or nonprofit private

establishment, approved by FNS, which prepares and serves meals for elderly persons, or for supplemental security income (SSI) recipients, and their spouses, a public or private nonprofit establishment (eating or otherwise) that feeds elderly persons or SSI recipients, and their spouses, and federally

subsidized housing for the elderly at which meals are prepared for and served to the residents. It also includes private establishments that contract with an appropriate State or local agency to offer meals at concessional prices to elderly persons or SSI recipients, and their spouses.

Coupon means any coupon, stamp, type of certificate, authorization card, cash or check issued in lieu of a coupon, or access device, including an electronic benefit transfer card or personal

identification number issued pursuant to the provisions of the Food Stamp Act of 1977, as amended, for the purchase of eligible food.

Coupon issuer means any office of the State agency or any person, partnership, corporation, organization, political subdivision, or other entity with which a State agency has contracted for, or to which it has assigned responsibility for, the issuance of coupons to households.

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Deficiency means any aspect of a State's program operations determined to be out of compliance with the Food Stamp Act, FNS Regulations, or program requirements as contained in the State agency's manual, the State agency's approved Plan of Operation or other State agency plans.

Department means the U.S. Department of Agriculture.

Direct access system means an issuance system in which benefits are issued directly to the household, without the use of an intermediary document, based on the issuance agent's direct access to information in the household's individual record on the master issuance file, which may be a card document or an on-line computer system.

Drug addiction or alcoholic treatment and rehabilitation program means any drug addiction or alcoholic treatment and rehabilitation program conducted by a private, nonprofit organization or institution, or a publicly operated community mental health center, under part B of title XIX of the Public Health Service Act (42 U.S.C. 300x et seq.). Under part B of title XIX of the Public Health Service Act is defined as meeting the criteria which would make it eligible to receive funds, even if it does not actually receive funding under part B of title XIX.

Elderly or disabled member means a member of a household who: (1) Is 60 years of age or older;

(2) Receives supplemental security income benefits under title XVI of the Social Security Act or disability or blindness payments under titles I, II, X, XIV, or XVI of the Social Security Act; (3) Receives federally or State-administered supplemental benefits under section 1616(a) of the Social Security Act provided that the eligibility

to receive the benefits is based upon the disability or blindness criteria used under title XVI of the Social Security Act;

(4) Receives federally or State-administered supplemental benefits under section 212(a) of Pub. L. 93–66; (5) Receives disability retirement benefits from a governmental agency because of a disability considered permanent under section 221(i) of the Social Security Act.

(6) Is a veteran with a service-connected or non-service-service-connected disability rated by the Veteran's

Administration (VA) as total or paid as total by the VA under title 38 of the United States Code;

(7) Is a veteran considered by the VA to be in need of regular aid and

attendance or permanently housebound under title 38 of the United States Code; (8) Is a surviving spouse of a veteran and considered by the VA to be in need of regular aid and attendance or

permanently housebound or a surviving child of a veteran and considered by the VA to be permanently incapable of self-support under title 38 of the United States Code;

(9) Is a surviving spouse or surviving child of a veteran and considered by the VA to be entitled to compensation for a service-connected death or pension benefits for a nonservice-connected death under title 38 of the United States Code and has a disability considered permanent under section 221(i) of the Social Security Act. “Entitled” as used in this definition refers to those veterans' surviving spouses and surviving children who are receiving the compensation or pension benefits stated or have been approved for such payments, but are not yet receiving them; or

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(10) Receives an annuity payment under: section 2(a) (1) (iv) of the Railroad Retirement Act of 1974 and is determined to be eligible to receive Medicare by the Railroad Retirement Board; or section 2(a) (1) (v) of the Railroad Retirement Act of 1974 and is determined to be disabled based upon the criteria used under title XVI of the Social Security Act;

(11) Is a recipient of interim

assistance benefits pending the receipt of Supplemented Security Income, a

recipient of disability related medical assistance under title XIX of the Social Security Act, or a recipient of disability-based State general assistance benefits

provided that the eligibility to receive any of these benefits is based upon disability or blindness criteria

established by the State agency which are at least as stringent as those used under title XVI of the Social Security Act (as set forth at 20 CFR part 416, subpart I, Determining Disability and Blindness as defined in Title XVI).

Eligible foods means: (1) Any food or food product intended for human

consumption except alcoholic beverages, tobacco, and hot foods and hot food products prepared for immediate consumption;

(2) Seeds and plants to grow foods for the personal consumption of eligible households;

(3) Meals prepared and delivered by an authorized meal delivery service to households eligible to use coupons to purchase delivered meals; or meals served by an authorized communal dining facility for the elderly, for SSI households or both, to households eligible to use coupons for communal dining;

(4) Meals prepared and served by a drug addict or alcoholic treatment and

rehabilitation center to narcotic addicts or alcoholics and their children who live with them;

(5) Meals prepared and served by a group living arrangement facility to residents who are blind or disabled as defined in paragraphs (2) through (11) of the definition of “Elderly or disabled member” contained in this section; (6) Meals prepared by and served by a shelter for battered women and children to its eligible residents;

(7) In the case of certain eligible households living in areas of Alaska where access to food stores is extremely difficult and the households rely on hunting and fishing for subsistence, equipment for the purpose of procuring food for eligible households, including nets, lines, hooks, fishing rods,

harpoons, knives, and other equipment necessary for subsistence hunting and fishing but not equipment for the purpose of transportation, clothing or shelter, nor firearms, ammunition or other explosives;

(8) In the case of homeless food stamp households, meals prepared for and served by an authorized public or private nonprofit establishment (e.g. soup kitchen, temporary shelter), approved by an appropriate State or local agency, that feeds homeless persons; and

(9) In the case of homeless food stamp households, meals prepared by a

restaurant which contracts with an appropriate State agency to serve meals to homeless persons at concessional (low or reduced) prices.

Employment and training (E&T) component a work experience, work training or job search program, as described in section 6(d) (4) (B) (iv) of the Food Stamp Act of 1977 (7 U.S.C. 2014(2) (4) (B)) designed to help food

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stamp recipients move promptly into unsubsidized employment.

Employment and training (E&T) mandatory participant a Food Stamp Program applicant or participant who is required to work register under 7 U.S.C. 2014(d) (1) or (2) and who the State determines should not be exempted from participation in an employment and training program.

Employment and training (E&T) program a program operated by each State agency consisting of one or more work, training, education or job search components.

Error for active cases results when a determination is made by a quality control reviewer that a household which received food stamp benefits during the sample month is ineligible or received an incorrect allotment. Thus, errors in active cases involve dollar loss to either the participant or the government. For negative cases, an “error” means that the reviewer determines that the decision to deny, suspend, or terminate a household was incorrect.

Exempted for purposes of §273.7 excluding paragraphs (a) and (b)—this term refers to a work registered person or persons excused by the State, under the conditions in §273.7(e) from participation in an employment and training program.

Exercises governmental jurisdiction

means the active exercise of the

legislative, executive or judicial powers of government by an Indian tribal organization.

Federal fiscal year means a period of 12 calendar months beginning with each October 1 and ending with September 30 of the following calendar year.

Firm's practice means the usual manner in which personnel of a firm or store accept food coupons as shown by

the actions of the personnel at the time of the investigation.

FNS means the Food and Nutrition Service of the U.S. Department of Agriculture.

Food Stamp Act means the Food Stamp Act of 1977 (Pub. L. 95–113), including any subsequent amendments thereto.

General assistance (GA) means cash or another form of assistance, excluding in-kind assistance, financed by State or local funds as part of a program which provides assistance to cover living expenses or other basic needs intended to promote the health or well-being of recipients.

Group living arrangement means a public or private nonprofit residential setting that serves no more than sixteen residents that is certified by the

appropriate agency or agencies of the State under regulations issued under section 1616(e) of the Social Security Act or under standards determined by the Secretary to be comparable to standards implemented by appropriate State agencies under section 1616(e) of the Social Security Act. To be eligible for food stamp benefits, a resident of such a group living arrangement must be blind or disabled as defined in

paragraphs (2) through (11) of the definition of “Elderly or disabled member” contained in this section.

Homeless individual means an

individual who lacks a fixed and regular nighttime residence or an individual whose primary nighttime residence is: (1) A supervised shelter designed to provide temporary accommodations (such as a welfare hotel or congregate shelter);

(2) A halfway house or similar institution that provides temporary

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residence for individuals intended to be institutionalized;

(3) A temporary accommodation for not more than 90 days in the residence of another individual; or

(4) A place not designed for, or ordinarily used, as a regular sleeping accommodation for human beings (a hallway, a bus station, a lobby or similar places).

Homeless meal provider means: (1) A public or private nonprofit establishment (e.g., soup kitchens, temporary shelters) that feeds homeless persons; or

(2) A restaurant which contracts with an appropriate State agency to offer meals at concessional (low or reduced) prices to homeless persons.

House-to-house trade route means any retail food business operated from a truck, bus, pushcart, or other mobile vehicle.

Identification (ID) card means a card which identifies the bearer as eligible to receive and use food coupons.

Immigration and Naturalization Service (INS) means the Immigration and Naturalization Service, U.S. Department of Justice.

Indian tribe means: (1) Any Indian tribe, Band, Nation, or other organized Indian group on a reservation for

example, a Rancheria, Pueblo or Colony, and including any Alaska Native Village or regional or village corporation

(established pursuant to the Alaska Native Claims Settlement Act (85 Stat. 688)), that is on a reservation and is recognized as eligible for Federal programs and services provided to Indians because of their status as Indians; or (2) any Indian tribe or Band on a reservation holding a treaty with a State government.

Indian tribal organization (ITO)

means: (1) The recognized governing body of any Indian tribe on a

reservation; or (2) the tribally recognized intertribal organization which the recognized governing bodies of two or more Indian tribes on a reservation authorizes to operate the Food Stamp Program or a Food Distribution Program on their behalf.

Insured financial institution means a financial institution insured by the Federal Deposit Insurance Corporation (FDIC) or financial institutions which are insured under the Federal Credit Union Act and which have retail food stores or wholesale food concerns in their field of membership.

Issuance month in a Monthly

Reporting and Retrospective Budgeting system means the fiscal or calendar month for which the State agency shall issue a food stamp allotment. Issuance is based upon income and circumstances in the corresponding budget month. In prospective budgeting, the budget month and issuance month are the same. In retrospective budgeting, the issuance month follows the budget month and the issuance month shall begin within 32 days after the end of the budget month.

Large project area means those project areas/management units with monthly active caseloads of more than 15,000 households based on the most current information available at the time the large project area review schedule is developed.

Low-income household means a household whose annual income does not exceed 125 percent of the Office of Management and Budget poverty guidelines.

Management Evaluation (ME) reviews

means reviews conducted by States at the project area level to determine if

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State agencies are administering and operating the Food Stamp Program in accordance with program requirements.

Management unit means an area based on a welfare district, region, or other administrative structure designated by the State agency and approved by FNS to be reviewed for ME review purposes.

Master issuance file means a

cumulative file containing the individual records and status of households, and the amount of benefits, if any, each

household is authorized to receive.

Meal delivery service means a political subdivision, a private nonprofit

organization, or a private establishment with which a State or local agency has contracted for the preparation and delivery of meals at concessional prices to elderly persons, and their spouses, and to the physically or mentally

handicapped and persons otherwise disabled, and their spouses, such that they are unable to adequately prepare all of their meals.

Medicaid means medical assistance under title XIX of the Social Security Act, as amended.

Medium project area means those project areas/management units with monthly active caseloads of 2,001 to 15,000 households based on the most current information available at the time the medium project area review schedule is developed.

Minimum benefit means the minimum monthly amount of food stamps that one- and two-person households receive. The amount of the minimum benefit shall be $10.

National standard payment error rate

means the weighted mean of all States' payment error rates during a base period.

Negative case means a household whose application for food stamp

benefits was denied or whose food stamp

benefits were suspended or terminated by an action in the sample month or by an action effective for the sample month.

Negative case error rate means an estimate of the proportion of denied, suspended, or terminated cases where the household was incorrectly denied, suspended, or terminated. This estimate will be expressed as a percentage of completed negative quality control reviews excluding all results from cases processed by SSA personnel or

participating in a demonstration project identified by FNS as having certification rules that are significantly different from standard requirements.

Newly work registered food stamp participants work registered at the point of application.

Nonprofit cooperative food purchasing venture means any private nonprofit association of consumers whose members pool their resources to buy food.

Offset year means the calendar year during which offsets may be made to collect certain recipient claims from individuals' Federal income tax refunds.

Overissuance means the amount by which coupons issued to a household exceeds the amount it was eligible to receive.

Overpayment error rate means the percentage of the value of all allotments issued in a fiscal year that are either: (1) Issued to households that fail to meet basic program eligibility requirements, or

(2) Overissued to eligible households.

Payment error rate means the sum of the point estimates of two component error rates: an overpayment error rate and an underpayment error rate. Each component error rate is the value of allotments either overissued or

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all allotments issued to completed active sample cases, excluding those cases processed by SSA personnel or participating in certain demonstration projects designated by FNS.

Placed in an employment and training (E&T) program means a State agency may count a person as “placed” in an E&T program when the individual commences a component.

Program means the food stamp program conducted under the Food Stamp Act and regulations.

Project area means the county or similar political subdivision designated by a State as the administrative unit for program operations. Upon prior FNS approval, a city, Indian reservation, welfare district, or any other entity with clearly defined geographic boundaries, or any combination of such entities, may be designated as a project area, or a State as a whole may be designated as a single project area.

Prospective budgeting in a Monthly Reporting and Retrospective Budgeting system means the computation of a household's food stamp allotment for an issuance month based on an estimate of income and circumstances which will exist in that month.

Public assistance (PA) means any of the following programs authorized by the Social Security Act of 1935, as amended: Old-age assistance, Temporary Assistance for Needy Families (TANF), including TANF for children of unemployed fathers, aid to the blind, aid to the permanently and totally disabled and aid to aged, blind, or disabled.

Quality control review means a review of a statistically valid sample of active and negative cases to determine the extent to which households are receiving the food stamp allotments to which they

are entitled, and to determine the extent to which decisions to deny, suspend, or terminate cases are correct.

Record-for-issuance file means a file which is created monthly from the master issuance file, which shows the amount of benefits each eligible

household is to receive for the issuance month, and the amount actually issued to the household.

Regulations means the provisions of this subchapter. Regulatory citations refer to provisions of this subchapter unless otherwise specified.

Reservation means the geographically defined area or areas over which an ITO exercises governmental jurisdiction so long as such area or areas are legally recognized by the Federal or a State government as being set aside for the use of Indians.

Retail food store means:

(1) An establishment or house-to-house trade route that sells food for home preparation and consumption normally displayed in a public area, and either offers for sale, on a continuous basis, a variety of foods in sufficient quantities in each of the four categories of staple foods including perishable foods in at least two such categories (Criterion A) as set forth in §278.1(b) (1) of this chapter, or has more than 50 percent of its total gross retail sales in staple foods (Criterion B) as set forth in §278.1(b) (1) of this chapter as

determined by visual inspection, marketing structure, business licenses, accessibility of food items offered for sale, purchase and sales records,

counting of stockkeeping units, or other inventory or accounting recordkeeping methods that are customary or

reasonable in the retail food industry as set forth in §278.1(b) (1) of this chapter. Entities that have more than 50 percent

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of their total gross retail sales in hot and/or cold prepared, ready-to-eat foods that are intended for immediate

consumption either for carry-out or on-premises consumption, and require no additional preparation, are not eligible for FSP participation as retail food stores under §278.1(b) (1) of this chapter; (2) Public or private communal dining facilities and meal delivery services; private nonprofit drug addict or alcoholic treatment and rehabilitation programs; publicly operated community mental health centers which conduct residential programs for drug addicts and/or alcoholics; public or private nonprofit group living arrangements; public or private nonprofit shelters for battered women and children; public or private nonprofit establishments,

approved by an appropriate State or local agency, that feed homeless persons; or a restaurant that contracts with an

appropriate State agency to provide meals at concessional (low or reduced) prices to homeless food stamp

households;

(3) Any stores selling equipment for procuring food by hunting and fishing to eligible households in Alaska, as

specified in the definition of eligible foods;

(4) Any private nonprofit cooperative food purchasing venture, including those whose members pay for food prior to receipt of the food; and

(5) A farmers' market.

Retrospective budgeting in a Monthly Reporting and Retrospective Budgeting system means the computation of a household's food stamp allotment for an issuance month based on actual income and circumstances which existed in a previous month, the “budget month.”

Review date for quality control active cases means a day within the sample

month, either the first day of the calendar or fiscal month or the day a certification action was taken to authorize the allotment, whichever is later. The “review date” for negative cases, depending on the characteristics of individual State systems, could be the date on which the eligibility worker makes the decision to suspend, deny, or terminate the case, the date on which the decision is entered into the computer system, the date of the notice to the client or the date the negative action becomes effective. For no case is the “review date” the day the quality control review is conducted.

Review period means the 12-month period from October 1 of each calendar year through September 30 of the following calendar year.

Sample frame means a list of all units from which a sample is actually selected.

Sample month means the month of the sample frame from which a case is selected (e.g., for all cases selected from a frame consisting of households

participating in January, the sample month is January).

Screening an evaluation by the

eligibility worker as to whether a person should or should not be referred for participation in an employment and training program. This activity would not be considered an approvable E&T component.

Secretary means the Secretary of the U.S. Department of Agriculture.

Shelter for battered women and children means a public or private nonprofit residential facility that serves battered women and their children. If such a facility serves other individuals, a portion of the facility must be set aside on a long-term basis to serve only battered women and children.

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271.2

Small project area means those project areas/management units with monthly active caseloads of 2,000 households or fewer based on the most current

information available at the time the small project area review schedule is developed.

SSA processed/demonstration case

means a case that is participating or has been denied based upon processing by SSA personnel or is participating or has been denied/terminated based upon the rules of a demonstration project with significantly different certification rules (as identified by FNS).

Staple food means those food items intended for home preparation and consumption in each of the following food categories: meat, poultry, or fish; bread or cereals; vegetables or fruits; and dairy products. Commercially processed foods and prepared mixtures with

multiple ingredients shall only be counted in one staple food category. For example, foods such as cold pizza, macaroni and cheese, multi-ingredient soup, or frozen dinners, shall only be counted as one staple food item and will normally be included in the staple food category of the main ingredient as determined by FNS. Hot foods are not eligible for purchase with food stamps and, therefore, do not qualify as staple foods for the purpose of determining eligibility under §278.1(b) (1) of this chapter. Accessory food items including, but not limited to, coffee, tea, cocoa, carbonated and uncarbonated drinks, candy, condiments, and spices shall not be considered staple foods for the purpose of determining eligibility of any firm. However, accessory foods that are offered for sale in authorized retail food stores are eligible food items which may be purchased with food stamp benefits.

State means any one of the fifty States, the District of Columbia, Guam, the Virgin Islands of the United States, and the reservation of an Indian tribe whose ITO meets the requirements of the Food Stamp Act for participation as a State agency.

State agency means: (1) The agency of State government, including the local offices thereof, which is responsible for the administration of the federally aided public assistance programs within the State, and in those States where such assistance programs are operated on a decentralized basis, it includes the counterpart local agencies which

administer such assistance programs for the State agency, and (2) the Indian tribal organization of any Indian tribe determined by the Department to be capable of effectively administering a Food Stamp Program or a Food

Distribution Program in accordance with provisions of the Food Stamp Act of 1977.

State Income and Eligibility Verification System (IEVS) means a system of information acquisition and exchange for purposes of income and eligibility verification which meets the requirements of section 1137 of the Social Security Act, generally referred to as the IEVS.

State Wage Information Collection Agency (SWICA) means the State agency administering the State unemployment compensation law, another agency administering a quarterly wage reporting system, or a State agency administering an alternative system which has been determined by the Secretary of Labor, in consultation with the Secretary of Agriculture and the Secretary of Health and Human Services, to be as effective and timely in providing employment

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271.2-271.3(b)

related income and eligibility data as the two just mentioned agencies.

Sub-units means the physical location of an organizational entity within a project area/management unit involved in the operation of the Food Stamp Program, excluding Post Offices.

Supplemental Security Income (SSI)

means monthly cash payments made under the authority of: (1) Title XVI of the Social Security Act, as amended, to the aged, blind and disabled; (2) section 1616(a) of the Social Security Act; or (3) section 212(a) of Pub. L. 93–66.

Systematic Alien Verification for Entitlements (SAVE) means the INS program whereby State agencies may verify the validity of documents provided by aliens applying for food stamp benefits by obtaining information from a central data file.

Thrifty food plan means the diet required to feed a family of four persons consisting of a man and a woman 20 through 50, a child 6 through 8, and a child 9 through 11 years of age, determined in accordance with the Secretary's calculations. The cost of such diet shall be the basis for uniform

allotments for all households regardless of their actual composition. In order to develop maximum food stamp

allotments, the Secretary shall make household size and other adjustments in the Thrifty Food Plan taking into account economies of scale and other adjustments as required by law.

Trafficking means the buying or selling of coupons, ATP cards or other benefit instruments for cash or consideration other than eligible food; or the exchange of firearms, ammunition, explosives, or controlled substances, as defined in section 802 of title 21, United States Code, for coupons.

Underissuance means the amount by which the allotment to which the household was entitled exceeds the allotment which the household received.

Underissuance error rate. (See Underpayment error rate.)

Underpayment error rate means the ratio of the value of allotments

underissued to recipient households to the total value of allotments issued in a fiscal year by a State agency.

Universe means all units for which information is desired.

Variance means the incorrect

application of policy and/or a deviation between the information that was used to authorize the sample month issuance and the verified information that should have been used to calculate the sample month issuance.

Wholesale food concern means an establishment which sells eligible food to retail food stores or to meal services for resale to households.

§271.3 Delegations to FNS for administration.

(a) Delegation. Within the

Department, FNS acts on behalf of the Department in the administration of the Food Stamp Program with the exception of those functions, which may be

delegated to other agencies within the Department. The right is reserved at any time to withdraw, modify, or amend any delegation of authority. When authority is delegated to FNS, the responsibilities may be carried out by the Administrator or by another official of FNS, or by State agencies with respect to claims against households, as designated.

(b) Claims settlement. FNS shall have the power to determine the amount of and to settle and adjust any claim arising under the provisions of the act or this

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271.3(b)-271.5(b)(1)

subchapter, and to compromise or deny all or part of any claim.

(c) Demonstration authority. FNS is authorized to undertake demonstration projects which test new methods designed to improve program

administration and benefit delivery. FNS is authorized to initiate program research and evaluation efforts for the purposes of improving and assessing program

administration and effectiveness. The procedure for initiating and conducting these projects is established in part 282. §271.4 Delegations to State agencies for administration.

(a) General delegation. The State agency shall be responsible for the administration of the program within the State, including, but not limited to: (1) Certification of applicant households;

(2) Issuance, control, and accountability of coupons;

(3) Developing and maintaining complaint procedures;

(4) Developing, conducting, and evaluating training;

(5) Conducting performance reporting reviews;

(6) Keeping records necessary to determine whether the program is being conducted in compliance with these regulations; and

(7) Submitting accurate and timely financial and program reports.

(b) Claims delegation. FNS delegates to the State agency, subject to the

standards in §273.18, the authority to determine the amount of, and settle, adjust, compromise or deny all or part of any claim which results from fraudulent or nonfraudulent overissuances to participating households.

§271.5 Coupons as obligations of the United States, crimes and offenses. (a) Coupons as obligations. Pursuant to section 15(d) of the Food Stamp Act, coupons are an obligation of the United States within the meaning of 18 United States Code (U.S.C.) 8. The provisions of Title 18 of the United States Code, “Crimes and Criminal Procedure,” relative to counterfeiting, misuse and alteration of obligations of the United States are applicable to coupons. (b) Penalties. Any unauthorized issuance, redemption, use, transfer, acquisition, alteration, or possession of coupons, ATP cards, or other program access device may subject an individual, partnership, corporation, or other legal entity to prosecution under sections 15 (b) and (c) of the Food Stamp Act or under any other applicable Federal, State or local law, regulation or ordinance. (1) Section 15(b) (1) of the Food Stamp Act reads as follows:

Subject to the provisions of paragraph (2) of this subsection, whoever knowingly uses, transfers, acquires, alters, or possesses coupons, authorization cards, or access devices in any manner contrary to this Act or the regulations issued pursuant to this Act shall, if such coupons, authorization cards, or access devices are of a value of $5000 or more, be guilty of a felony and shall be fined not more than $250,000 or imprisoned for not more than twenty years, or both, and shall, if such coupons or authorization cards are of a value of $100 or more but less than $5000 or if the item used, transferred, acquired, altered or possessed is an access device that has a value of $100 or more but less than $5000 be guilty of a felony and shall upon the first conviction thereof, be fined not more than $10,000 or imprisoned for not more than five years, or both, and upon the second and any subsequent conviction thereof, shall be imprisoned for

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271.5(b)(1)-(d)(1)

not less than six months nor more than five years and may also be fined not more than $10,000 or, if such coupons or authorization cards are of a value of less than $100, or if the item used, transferred, acquired, altered, or possessed is an access device that has a value of less than $100, shall be guilty of a misdemeanor, and upon the first conviction thereof, shall be fined not more than $1000 or imprisoned for not more than one year or both, and upon the second and any

subsequent conviction thereof, shall be imprisoned for not more than one year and may also be fined not more than $1000. In addition to such penalties, any person convicted of a felony or misdemeanor violation under this subsection may be suspended by the court from participation in the food stamp program for an additional period of up to eighteen months consecutive to that period of suspension mandated by section 6(b) (1) of this Act.

(2) Section 15(b) (2) of the Food Stamp Act reads as follows:

In the case of any individual convicted of an offense under paragraph (b) (1) of this section, the court may permit such

individual to perform work approved by the court for the purpose of providing restitution for losses incurred by the United States and the State agency as a result of the offense for which such individual was convicted. If the court permits such individual to perform such work and such individual agrees thereto, the court shall withhold the imposition of the sentence on the condition that such individual perform the assigned work. Upon the successful completion of the assigned work the court may suspend such sentence.

(3) Section 15(c) of the Food Stamp Act reads as follows:

Whoever presents, or causes to be presented, coupons for payment or redemption of the value of $100 or more, knowing the same to have been received,

transferred, or used in any manner in violation of the provisions of this Act or the regulations issued pursuant to this Act, shall be guilty of a felony and, upon the first conviction thereof, shall be fined not more than $20,000 or imprisoned for not more than five years, or both, and upon the second and any subsequent conviction thereof, shall be imprisoned for not less than one year nor more than five years and may also be fined not more than $20,000 or if such coupons are of a value of less than $100, shall be guilty of a misdemeanor and, upon the first conviction thereof, shall be fined not more than $1,000 or imprisoned for not more than one year, or both, and upon the second and any subsequent conviction thereof, shall be imprisoned for not more than one year and may also be fined not more than $1,000. In addition to such penalties, any persons convicted of a felony or misdemeanor violation under this subsection may be suspended by the court from participation in the food stamp program for an additional period of up to eighteen months consecutive to that period of suspension mandated by section 6(b) (1) of this Act.

(c) Security for coupons and ATP's. All individuals, partnerships,

corporations, or other legal entities including State agencies and their delegatees (referred to in this paragraph as “persons”) having custody, care and control of coupons and ATP's shall, at all times, take all precautions necessary to avoid acceptance, transfer,

negotiation, or use of spurious, altered, or counterfeit coupons and ATP's and to avoid any unauthorized use, transfer, acquisition, alteration or possession of coupons and ATP's. These persons shall safeguard coupons and ATP's from theft, embezzlement, loss, damage, or

destruction.

(d) Coupon issuers. (1) Any coupon issuer or any officer, employee or agent, thereof convicted of failing to provide

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271.5(d)(1)-(e)(2)(v)(B)

or convicted of violating part 274 shall be subject to a fine of not more than $1,000, or imprisoned for not more than 1 year, or both.

(2) Any coupon issuer or any officer, employee or agent, thereof convicted of knowingly providing false information in the reports required under §274.5 shall be subject to a fine of not more than $10,000, or imprisoned not more than 5 years, or both.

(e) Forfeiture and denial of property rights. (1) General. (i) Any nonfood items, moneys, negotiable instruments, securities, or other things of value furnished or intended to be furnished by any person in exchange for food

coupons, authorization cards, or other program benefit instruments or access devices in any manner not authorized by the Food Stamp Act or regulations issued pursuant to the Act, shall be subject to forfeiture and denial of

property rights. Such property is deemed forfeited to the United States

Department of Agriculture (USDA) at the time it is either exchanged or offered in exchange.

(ii) These forfeiture and denial of property rights provisions shall apply to property exchanged or offered in

exchange during investigations conducted by the Inspector General, USDA, and by other authorized Federal law enforcement agencies.

(iii) These forfeiture and denial of property rights provisions shall not apply to property exchanged or intended to be exchanged during the course of internal investigations by retail firms, during investigations conducted solely by State and local law enforcement agencies and without the participation of an

authorized Federal law enforcement agency, or during compliance

investigations conducted by the Food and Nutrition Service.

(2) Custodians and their

responsibilities. (i) The Inspector General, USDA, the Inspector General's designee, and other authorized Federal law enforcement officials shall be custodians of property acquired during investigations.

(ii) Upon receiving property subject to forfeiture the custodian shall:

(A) Place the property in an appropriate location for storage and safekeeping, or

(B) Request that the General Services Administration (GSA) take possession of the property and remove it to an

appropriate location for storage and safekeeping.

(iii) The custodian shall store property received at a location in the judicial district where the property was acquired unless good cause exists to store the property elsewhere.

(iv) Custodians shall not dispose of property prior to the fulfillment of the notice requirements set out in paragraph 3, or prior to the conclusion of any related administrative, civil, or criminal proceeding, without reasonable cause. Reasonable cause to dispense with notice requirements might exist, for example, where explosive materials are being stored which may present a danger to persons or property.

(v) Custodians may dispose of any property in accordance with applicable statutes or regulations relative to disposition. The custodian may: (A) Retain the property for official use;

(B) Donate the property to Federal, State, or local government facilities such as hospitals or to any nonprofit

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271.5(e)(2)(v)(B)-(4)(v)

such under section 501(c) (3) of the Internal Revenue Code; or

(C) Request that GSA take custody of the property and remove it for

disposition or sale.

(vi) Proceeds from the sale of forfeited property and any moneys forfeited shall be used to pay all proper expenses of the proceedings for

forfeiture and sale including expenses of seizure, maintenance of custody,

transportation costs, and any recording fees. Moneys remaining after payment of such expenses shall be deposited into the general fund of the United States Treasury.

(3) Notice requirements. (i) The custodian shall make reasonable efforts to notify the actual or apparent owner(s) of or person(s) with possessory interests in the property subject to forfeiture except for the good cause exception if the owner cannot be notified.

(ii) The notice shall:

(A) Include a brief description of the property;

(B) Inform the actual or apparent owner(s) of or person(s) with possessory interests in the property subject to forfeiture of the opportunity to request an administrative review of the

forfeiture;

(C) Inform the actual or apparent owner(s) of or person(s) with possessory interests in the property subject to forfeiture of the requirements for requesting administrative review of the forfeiture; and

(D) State the title and address of the official to whom a request for

administrative review of the forfeiture may be addressed.

(iii) Except as provided in paragraphs (e) (3) (iv) and (v) of this section, notice shall be given within 45 days from the date the United States convicts, acquits,

or declines to act against the person who exchanged the property.

(iv) Notice may be delayed if it is determined that such action is likely to endanger the safety of a law enforcement official or compromise another ongoing criminal investigation conducted by OIG, the United States Secret Service, the United States Postal Inspection Service, or other authorized Federal law enforcement agency.

(v) Notice need not be given to the general public.

(4) Administrative review. (i) The actual or apparent owner(s) of or

person(s) with possessory interests in the property shall have 30 days from the date of the delivery of the notice of forfeiture to make a request for an administrative review of the forfeiture. (ii) The request shall be made in writing to the Assistant Inspector General for Investigations, Office of Inspector General, USDA, or to his/her designee, hereinafter referred to as the reviewing official.

(iii) A request for an administrative review of the forfeiture of property shall include the following:

(A) A complete description of the property, including serial numbers, if any;

(B) Proof of the person's property interest in the property; and,

(C) The reason(s) the property should not be forfeited.

(iv) The requestor may, at the time of his/her written request for administrative review, also request an oral hearing of the reasons the property should not be forfeited.

(v) The burden of proof will rest upon the requestor, who shall be required to demonstrate, by a preponderance of the evidence, that the property should not be forfeited.

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271.5(e)(4)(vi)-271.6(a)(3)

(vi) Should the administrative determination be in their favor, the actual or apparent owner(s) of or

person(s) with possessory interests in the property subject to forfeiture may

request that forfeited items be returned or that compensation be made if the custodian has already disposed of the property.

(vii) The reviewing official shall not remit or mitigate a forfeiture unless the requestor:

(A) Establishes a valid, good faith property interest in the property as owner or otherwise; and

(B) Establishes that the requestor at no time had any knowledge or reason to believe that the property was being or would be used in violation of the law; and

(C) Establishes that the requestor at no time had any knowledge or reason to believe that the owner had any record or reputation for violating laws of the United States or of any State for related crimes.

(viii) The reviewing official may postpone any decision until the

conclusion of any related administrative, civil, or criminal proceeding.

(ix) The decision of the reviewing official as to the disposition of the property shall be the final agency determination for purposes of judicial review.

§271.6 Complaint procedure. (a) State agency responsibility—(1) General scope. The State agency shall maintain a system of its choosing for handling program complaints filed by participants, potential participants, or other concerned individuals or groups. This shall not include complaints alleging discrimination on the basis of

race, sex, age, religious creed, national origin, political beliefs or handicap; such complaints shall be handled in

accordance with §272.6. This procedure also need not include complaints that can be pursued through a fair hearing.

Complaints regarding such areas as processing standards and service to participants and potential participants would generally be handled under this complaint procedure.

(2) Minimum requirements. The State agency shall follow up on complaints, resolve complaints and take corrective action where warranted, and respond to the complainant on the State agency's disposition of the complaint. The State agency shall make information on the complaint system and how to file a complaint available to participants, potential participants and other interested persons. The State agency may make the information available through written materials or posters at certification offices or other appropriate means.

(3) Complaint analysis. The State agency shall maintain records of complaints received and their

disposition, and shall review records at least annually to assess whether patterns of problems may be present in local offices, project areas, or throughout the State. The results of this review shall be provided to the Performance Reporting System coordinator for appropriate action, and for inclusion, if appropriate, in the State Corrective Action Plan in accordance with §275.16 of this chapter. The information provided to the

Performance Reporting System Coordinator shall include the identification, if any, of potential or actual patterns of deficiencies in local offices, project areas, or throughout the